Seven global transportation companies have announced that they are supporting a nine-month-old online exchange for shippers and carriers. AIT Worldwide Logistics of Chicago; BAX Global of Irvine, Calif.; Central Freight Lines of Waco, Texas; Central Global Express of Romulus, Mich.; Exel of Bracknell, U.K.; Watkins Motor Lines of Lakeland, Fla.; and Schneider Logistics of Green Bay, Wis., have all joined the SupplyLinks global network. Given that most observers expect a shakeout among logistics exchanges this year, support from established industry players may prove critical to the long-term survival of portals such as SupplyLinks.

Unlike auction-based exchanges, which award a shipment to the carrier with the lowest bid, the San Francisco, Calif.-based portal facilitates load tendering within its Web network. Members establish and maintain pricing through the network by providing pre-negotiated tariffs to SupplyLinks. The exchange is integrated with the information systems of participating providers. It also offers such services as transportation optimization for route, mode, and carrier selection and landed-cost optimization for improved sourcing decisions.

Many industry experts believe that exchanges will have to move away from the auction model to one that supports shipper-carrier relationships. Carriers are leery of auction-type exchanges because they tend to drive down freight rates. And many large shippers prefer to do business with carriers that have established records for reliable delivery rather than purchase transportation on a spot basis.

At least one analyst has praised SupplyLinks' approach. "SupplyLinks realizes that many shippers already have existing contracts with carriers, while others are willing to shop around," says Adrian Gonzalez, a senior analyst with ARC Advisory Group in Dedham, Mass. "By enabling the former to maintain existing relationships and providing the latter with reduced carrier-established tariffs, SupplyLinks has created a win-win situation for both shippers and service providers."